How Much Does Propane Tank Installation Cost in 2025?
The average cost of propane tank installation is $1,400
The average cost to install a propane tank is $1,400, with most homeowners spending between $600 and $2,500.
Above-ground installations cost between $400 and $3,500, while underground installations range from $1,500 to $5,500.
Cost factors include tank size, installation type, location, and labor.
Hiring a professional propane tank installer ensures safety and compliance with regulations.
Additional costs may include concrete pads, gas lines, permits, and inspections.
This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.
Propane tank installation costs an average of $1,400, with homeowners paying between $350 and $5,500, depending on factors like tank size, installation type (above or below ground), and location. Whether you're looking to heat your entire home or fire up your grill, a propane tank is a handy tool that provides reliable fuel for various needs. Budgeting for the tank and installation fees is essential, and hiring a professional installer ensures safety and compliance with local regulations.
Above- vs. Below-Ground Propane Installation Cost
You have two options for installing a residential propane tank: above-ground or underground. The option you choose can significantly impact your total project cost. You'll find that labor costs are higher for excavation, trenching, and plumbing projects.
Above
Installing an above-ground propane tank is much more affordable than burying one, costing between $400 and $3,500. You'll need a special concrete pad as the foundation for your tank, and you'll also need to have a gas line installed.
Below
An underground propane tank is a great option if you have limited space or want to keep the tank out of sight. You'll pay between $1,500 and $5,500, depending on the tank size and the length of the gas lines.
Here's a breakdown of labor costs when installing an underground propane tank:
Excavating: $500 to $2,400
Plumbing: $45 to $200 per hour
Trenching: $400 to $1,200
Gas Line: $120 to $1,350
Propane Tank Installation Cost Factors
Propane tank prices for homes range between $600 and $2,500 before labor. While tank prices mainly depend on size and capacity, many other cost factors can affect your project total. Here are some factors that may increase the cost of installing your new residential propane tank.
Propane Tank Size and Capacity
The size of the propane tank you're installing will impact the price for both underground and above-ground tanks. Most homeowners need a 500-gallon tank to meet their home's demands.
| Tank Size (Gallons) | Average Cost Range |
|---|---|
| Less than 100 | $35–$300 |
| 100 | $350–$500 |
| 120 | $400–$800 |
| 250 | $500–$1,000 |
| 500 | $700–$3,000 |
| 1,000 | $1,500–$5,500 |
Location
Different propane tank sizes require different distances from your home, HVAC system, and street. Generally, your propane tank should be at least 10 feet away from your home and other structures. Your tank should also be within 100 to 150 feet of the street for hose accessibility. If it's farther than the recommended distances, you may need extra piping, which adds $15 to $25 per linear foot. It's important to know the requirements based on your tank's size. If you're unsure about your tank's size, distance, or placement, ask your propane tank pro for recommendations.
Labor
The average propane tank costs $35 to $3,500 for materials alone. You'll also need to budget an additional $250 to $5,000 to hire a propane tank specialist to install the tank. Most installers will charge based on the type and complexity of the project, although some may offer an hourly rate.
Inspections and Permits
You’ll also need to budget between $25 and $150 for permits when installing any style of residential propane unit. If you choose an underground propane tank, you'll need to pay $50 to $75 annually to inspect the buried propane tank to check for leaks and ensure the valve is in good condition.
Excavations
Labor costs to excavate an underground propane tank range from $50 to $200 per cubic yard. Most homeowners choose a 500-gallon propane tank, requiring 10 to 12 cubic yards, which brings costs between $500 and $2,400.
Concrete Pads
If you've opted for an above-ground propane tank, you'll need to install a concrete pad or slab before installing the tank. Larger tanks take up more space and, therefore, need larger slabs. Here's what the price breakdown looks like for concrete pads based on the size of your propane unit:
120 gallons: $50 to $75
250 gallons: $75 to $125
500 gallons: $125 to $175
Installing Gas Lines
Next up is the cost to install gas lines, which ranges from $250 to $800. Most homeowners pay $540, but costs vary by size. You'll pay an average of $15 and $25 per linear foot.
DIY Propane Tank Installation vs. Hiring a Pro
Installing your own propane tank isn't just extremely dangerous and challenging—it’s also illegal in most places. Unless you're simply connecting a small, portable propane tank, like a five-gallon tank, for your outdoor grill, it's best to leave this project to the propane tank pros. A licensed propane installation pro knows how to handle flammable gases safely and understands all the restrictions and licensing needed. Contact a local professional to ensure your propane tank installation is safe and compliant.
How HomeAdvisor Gets Its Cost Data
No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. After a project is complete, we survey real customers about the costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Frequently Asked Questions
Buried propane tanks offer many benefits, including limited visibility, which keeps your yard looking clean. Buried propane tanks are also better for cold climates because they maintain consistent temperatures and offer extra protection in case of a leak. However, installing an underground tank is more complicated and costly than an above-ground tank because it requires excavation.
How big a propane tank you need depends on what you're trying to power. To power an entire home, you'll want a 500-gallon propane tank. Small, portable propane tanks can cost between $35 and $60, but they can only power small items like a patio grill. Larger homes that have higher demands might need a 1,000-gallon tank.
A propane tank delivers reliable performance for over 30 years when maintained properly. The lifespan of your propane tank is determined by upkeep, climate, and the installation method chosen. Federal regulations require every tank to be requalified or replaced every five to 10 years, reinforcing the importance of routine inspections and professional upkeep.
Filling a 500-gallon propane tank costs between $600 and $1,600. Keep in mind that tanks are only filled to 80% capacity to allow for fuel expansion. Pricing can also vary depending on whether the supplier charges based on the amount of propane delivered or the cost to fill an empty tank. To avoid surprises and receive an accurate bill, it’s important to communicate clearly with your supplier—an essential step for a hassle-free installation.
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